Market Overview
| Study Period | 2021 - 2030 |
|---|---|
| Base Year For Estimation | 2024 |
| Forecast Data Period | 2025 - 2030 |
| Historical Data Period | 2021 - 2023 |
| Growth Rate | 10.00% CAGR |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Germany Energy Storage Systems Market Analysis by Mordor Intelligence
The Germany Energy Storage Systems Market is expected to register a CAGR of greater than 10% during the forecast period.
The market was negatively impacted by the outbreak of COVID-19 due to regional lockdowns and delays in projects. However, the market rebounded in 2021.
- Over the medium term, factors such as the increasing share of renewables in the electricity generation mix, a decline in the cost of storage batteries and solar photovoltaic panels, supportive government policies like low-interest rates on loans, and investment grants on battery systems are driving the German energy storage market.
- On the other hand, the problem of creating adequate and intelligent power grids across the country to harness and store the growing renewable energy remains a challenge, which may hinder the growth of the market.
- However, Germany is planning to install 30 GW offshore wind energy turbines by 2030, 40 GW by 2035, and 70 GW by 2045, which may require large-scale energy storage systems, thus creating a vast opportunity for companies in the coming years.
Germany Energy Storage Systems Market Trends and Insights
Battery Systems for Storage of Renewable Energy to Witness Significant Growth
- The deployment of the battery energy storage system is anticipated to increase in the coming years due to the changes in the power sector. The country has witnessed a significant increase in renewable energy installation in recent years. Lithium-ion batteries are expected to have higher demand during the forecast period.
- With the declining costs of lithium-ion batteries, the demand for batteries registered a substantial rise for residential and commercial uses, especially in the electronics and vehicle markets. Battery costs in the country have declined by more than half, and this trend is expected to continue in the coming years.
- As of March 2021, there were over 300,000 residential battery systems in the country, with a majority of these connected to solar energy.
- With more than 58.4 GW of solar capacity and more than 63.7 GW of wind energy capacity in 2021, the requirement for a storage system is expected to grow during the forecast period.
- Such development in the renewable energy sector and reduction in battery prices are expected to significantly propel the demand for battery systems to store renewable energy.
Upcoming Projects and Government Initiatives to Drive the Market
- Several public and private initiatives in the country are cooperating to develop energy storage technologies. To support the demand for storage systems and renewable energy, the federal government is making PV battery system investment highly attractive by providing unique incentives, including low-interest rates on loans and investment grants.
- The energy storage market in Germany has experienced a massive boost in recent years, majorly due to the country's ambitious energy transition project, Energiewende. The boom in batteries and other storage technologies is expected to impact Germany's energy transition significantly.
- Installed wind energy capacity in Germany has also witnessed significant growth in recent years, growing from 26.9 GW in 2010 to 63.7 GW in 2021.
- In October 2022, Fluence Energy and TransnetBW announced plans to develop a 250 MW battery energy storage (BES) as a transmission project in Germany. The Netzbooster project is expected to be completed in 2025.
- Such developments and government initiatives are likely to boost the demand for energy storage in the country during the forecast period.
Competitive Landscape
The German energy storage market is partially consolidated. Some of the major companies include (in no particular order) Enel SpA, Renewable Energy Systems Ltd, STEAG GmbH, and Fraunhofer-Gesellschaf, and Redt Energy PLC.
Germany Energy Storage Systems Industry Leaders
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Enel S.p.A
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Renewable Energy Systems Ltd
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STEAG GmbH
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Fraunhofer-Gesellschaf
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Redt Energy PLC
- *Disclaimer: Major Players sorted in no particular order
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Recent Industry Developments
- November 2022: RWE announced its plans to install 220 MW of battery storage capacity at two decommissioned lignite-fired and coal-fired power plants in North Rhine-Westphalia, Germany, for around USD 147 million. The construction of this project is scheduled to start in 2023, and commissioning is planned for 2024.
- October 2022: Fluence Energy GmbH and TransnetBW GmbH announced the deployment of the world's largest battery-based energy storage-as-transmission project. Fluence Energy GmbH is a leading company in energy storage products and services, and TransnetBW GmbH is Germany's leading transmission system operator. With this project, both companies aim to improve energy security and significantly support Germany's energy transition pathway by increasing the efficiency of the existing grid infrastructure.
Germany Energy Storage Systems Market Report Scope
Energy storage is the process of capturing the energy produced for use at a later time to reduce imbalances between energy demand and production. A device that stores energy is generally called an accumulator or battery.
The German energy storage market is segmented by type and application. By type, the market is segmented into batteries, pumped-storage hydroelectricity (PSH), thermal energy storage (TES), and other types. By application, the market is segmented into residential and commercial and industrial. For each segment, the market sizing and forecasts have been done based on revenue (USD billion).
Type
| Batteries |
| Pumped-Storage Hydroelectricity (PSH) |
| Thermal Energy Storage (TES) |
| Other Types |
Application
| Residential |
| Commercial and Industrial |
| Type | Batteries |
| Pumped-Storage Hydroelectricity (PSH) | |
| Thermal Energy Storage (TES) | |
| Other Types | |
| Application | Residential |
| Commercial and Industrial |
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Key Questions Answered in the Report
What is the current Germany Energy Storage Systems Market size?
The Germany Energy Storage Systems Market is projected to register a CAGR of greater than 10% during the forecast period (2025-2030)
Who are the key players in Germany Energy Storage Systems Market?
Enel S.p.A, Renewable Energy Systems Ltd, STEAG GmbH, Fraunhofer-Gesellschaf and Redt Energy PLC are the major companies operating in the Germany Energy Storage Systems Market.
What years does this Germany Energy Storage Systems Market cover?
The report covers the Germany Energy Storage Systems Market historical market size for years: 2021, 2022, 2023 and 2024. The report also forecasts the Germany Energy Storage Systems Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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